Museum fails to provide financial data to Peoria County

PEORIA — With approximately two months left in their fiscal year, Peoria Riverfront Museum officials have failed to provide several mandatory financial documents to their landlord, Peoria County.

For months, county officials have asked for — but not received — audited financial statements from last year, federal tax forms and a copy of the museum's operating and capital budget.

“If you do not want some public oversight, then don't take the public's money. Once you take the public money, you open the door to oversight. That's how it works,” said County Board member Stephen Morris, who heads the county's museum committee, which was formed after voters three years ago approved a quarter-percent sales tax to help pay for the facility.

“I feel we have a fiduciary obligation to the taxpayers.”

The museum's fiscal year ended June 30, 2012 — nearly 10 months ago — and Scott Sorrel, one of the county's top administrators, said the county has been seeking financial records since shortly after the new fiscal year began.

Jim Richerson, the museum's president, said Tuesday in an email response to questions that last year's audit hadn't been completed.

“In response to your question, the 2012 audit is still underway because it has been a much more complex process than those conducted in years past,” he wrote. “It's the first audit where Lakeview Museum, Peoria Riverfront Museum and Peoria Riverfront Museum Foundation have been combined into one audit.

“The museum also received more federal grants than in past years. This increase in funding requires more complex reporting. Upon completion, the audit will be delivered to Peoria County per the requirements of the Lease and Operating Agreement.”

The lack of disclosure means there's no clear picture of the museum's finances after mid-2011.

All the documents are required to be submitted yearly according to a lease agreement between the county — which owns the building and the land — and the museum board. Also required and not submitted is a statement of community benefit which details what the museum has done to improve Peoria County and often includes information like attendance and past and future exhibits.

Andrew Rand, a County Board member who used to head up the museum committee, said the museum has been afforded “more than ample opportunity to complete whatever audit complexity concerns they have had.”

“We are not going to the moon here. We are just trying to get a financial statement audit,” he said. “I urge them with all due expediency to comply.”

Rand and others have said they have no desire to run the day-to-day operations of the museum. Rather, Rand said, the goal is supervise the “agreement they signed.”

County officials say the agreement is in place to protect taxpayers' investment.

“As of today, I am unaware if they have their audited financial statements prepared. We have asked and they haven't provided them. That would lead one to surmise that they aren't done,” Sorrel said. “We were told a month ago that they were done and that it had to only get approved by their financial committee.

“And yet, here we are today with no information. I don't want to see our tenant, the PRM, look bad. We have given them every benefit of the doubt. But one can only conclude they haven't given us a budget because they don't have a budget.

“They don't want to talk about attendance because they aren't hitting those targets.”

A tersely worded email to Richerson from the county obtained by the Journal Star clearly shows Sorrel's frustration.

“The private sector and most of the non-profit sector have to have their audited financials completed with 90 days of the close of the fiscal year … Giving you the benefit of the doubt, the County waited until the end of January 2013, which would have been the 180 days. We are now well past that, and yet we have nothing to show for it,” the email states.

“This practice is unacceptable. I am going to ask this last time. Please provide me with all of the financial information required to be provided to the County for the museum's fiscal year ended June 30, 2012 by close of business Thursday, April 18, 2013. Additionally, please provide me with the financial report from your most recent Board meeting by the same deadline.”

The lease agreement provides that if the museum is not reaching certain financial milestones, the county has the authority to require the museum to scale back its operations.

“The lease is very clear on that,” Sorrel said.

Correction: This story was corrected Wednesday to show the county sales tax used to help build the facility is a quarter-percent.

Andy Kravetz can be reached at 686-3283 or akravetz@pjstar.com. Follow him on Twitter @andykravetz.